ERYTech: H1 15 loss higher than expected. But towards a US listing and the frontline setting in ALL… What else ?

BUY, Fair Value EUR42 (+25%)

News published on
September Tuesday 29, 2015

Share on

The H1 15 loss is wider than anticipated,
mainly due to a faster-than-expected progression of R&D expenses. Apart
from this, we note that the company is effectively planning to initiate new
trials to expand its reach to the first-line in ALL. This is clearly good news
as we think the company will not only expand its addressable patient
population, but also benefit from a favourable basis of comparison in terms of
pricing (Erwinaze cost of treatment ranging from USD100,000 to 150,000). Also,
we wonder if management is not considering a standalone strategy in the US
given the very limited salesforce it would need. BUY reiterated with a FV of
EUR42, while keeping in mind that this number should evolve once we have more
details on the company’s strategy.